26. A \"deductible\" is: CIRCLE ALL THAT APPLY (2 points) The amount of any loss

Question

26. A "deductible" is: CIRCLE ALL THAT APPLY (2 points) The amount of any loss that must be paid by the insured (the party covered by the insurance) before the insurance company will pay anything. The amount that a homeowner must pay from his savings in order to purchase a home, with the remainder of the funds borrowed in the form of a mortgage. The amount of bad-debt expense that a bank may report on its tax return. a. b. c. d. The reduction in a borrower's credit score related to a failure to pay an existing debt obligation on a timely basis.

Explanation / Answer

The correct answer is option (A)

A "deductible" is the amount of any loss that must be paid by the insured ( the party covered by the insurance) before the insurance company will pay anything. The deal is that the insured pays the first part of exoense. This is generally done to reduce the burden of insurance company which consists of claims of small amounts.

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